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Singapore Govt blocks NTUC Income and Allianz deal after public outcry

The Singapore government has blocked a proposed deal between NTUC Income and Allianz, citing public interest concerns. The S$2.2 billion transaction sparked widespread opposition over fears that the insurer would deviate from its mission to serve low-income workers.

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The Singapore government has intervened to block a proposed transaction between NTUC Income and German insurance giant Allianz. The decision follows concerns over the potential impact on NTUC Income’s social mission, which focuses on providing affordable insurance to low-income workers.

The proposed deal, which was announced on 17 July 2024, would have seen Allianz acquire a majority stake of 51 per cent in NTUC Income for S$2.2 billion, approximately US$1.6 billion.

While NTUC Enterprise, which oversees NTUC Income, had assured the public it would retain a “substantial” share in the company, the announcement triggered significant opposition from prominent figures and members of the public.

In a ministerial statement to parliament on 14 October, Edwin Tong, Singapore’s Minister for Culture, Community and Youth, confirmed the government’s decision to halt the deal.

“The government has assessed the proposed transaction and has decided that it would not be in the public interest for the transaction, in its current form, to proceed,” Mr Tong stated.

Public Outcry and Concerns

The controversy surrounding the deal largely revolved around concerns that Allianz, as a multinational corporation, would not be aligned with NTUC Income’s mission to serve the needs of lower-income Singaporeans.

NTUC Income was established with a clear mandate to provide affordable insurance options, especially for those in the labour movement and the lower-income segments of society.

Several prominent voices spoke out against the transaction.

Former NTUC Income CEO Tan Kin Lian expressed concerns about the potential shift in NTUC Income’s priorities, stating that the proposed deal could undermine its original purpose.

Similarly, ambassador-at-large Tommy Koh and former Group CEO of NTUC Enterprise Tan Suee Chieh voiced their opposition.

Mr Tan Suee Chieh went as far as to call the deal a “breach of good faith” and urged government regulators to intervene.

The key fear was that Allianz’s corporate objectives, which are driven by profit motives typical of global insurers, would lead to a reduction in NTUC Income’s commitment to affordable and accessible insurance for Singapore’s working class.

There were worries that under Allianz’s ownership, insurance premiums could increase, pricing out low-income individuals who depend on NTUC Income’s services.

NTUC Income, Singapore’s one and only insurance co-operative, was corporatised in 2022 into Income Insurance Limited “to achieve operational flexibility and gain access to strategic growth options to compete on an equal footing with other insurers locally and regionally”.

Shareholders were assured at the 2022 annual general meeting that NTUC Enterprise will continue to be the majority shareholder of the new company post-corporatisation.

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Parliament

Education Minister: Bullying incidents steady over 5 years; MPs question MOE’s approach

During the 14 Oct Parliamentary sitting, Education Minister Chan Chun Sing reported that bullying incidents in schools have remained stable over the past 5 years, averaging 2 per 1,000 primary students and 6 per 1,000 secondary students annually. NCMP Hazel Poa questioned the five-year timeframe, suggesting a 20-year review, to which Minister Chan acknowledged the lack of long-term data.

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SINGAPORE: Education Minister Chan Chun Sing stated that the number of reported bullying incidents in schools has remained stable over the past five years.

On average, there were around two incidents per 1,000 primary school students and six incidents per 1,000 secondary school students annually, he said.

Bullying incidents involving technology accounted for fewer than one per 1,000 secondary students, and even fewer at the primary school level.

Speaking during the parliamentary session on Monday (14 October), Minister Chan addressed questions raised by fellow MPs regarding recent school bullying cases that have sparked public concern.

One case involved a video circulated online last month, allegedly showing students from Bukit View Secondary School bullying a peer, though the incident actually occurred in October last year.

Minister Chan reassured MPs that the Ministry of Education (MOE) equips students with pro-social skills through the Character and Citizenship Education (CCE) curriculum, which includes lessons on kindness, conflict resolution, and appropriate behaviour.

Minister emphasised the need to balance punishment with rehabilitation

Teachers are trained to foster a supportive classroom environment and to address bullying proactively.

He explained that MOE considers the severity of each incident and the profiles of the students involved when determining disciplinary actions.

These can range from detention and suspension to caning for boys as a last resort. In serious cases, police reports may be filed.

However, Minister Chan stressed the importance of balancing punishment with rehabilitation.

He cautioned against actions that could hinder a perpetrator’s opportunity for reform, particularly counterproductive behaviors on social media, emphasising the need for a justice that blends accountability with rehabilitation.

MP He Ting Ru inquires about breakdown of bullying incidents and special guidelines for neurodiverse students

Ms He Ting Ru, Workers’ Party MP for Sengkang GRC, pressed Minister Chan for breakdown of reported bullying incidents, specifically distinguishing between offline and online incident reported to the school.

Minister Chan clarified that while the data for offline incidents had been provided, online incidents were generally reported at a much lower rate.

He acknowledged that this discrepancy might be due to a lack of awareness among students about what constitutes online bullying.

For instance, if a child feels persistently excluded from a group, it could be a form of psychological bullying, but understanding this requires context.

Minister Chan suggested that the number of reported online bullying incidents is likely to rise over time as awareness increases and as children are exposed to more online interactions.

Ms He also inquired about any special guidelines or approaches for handling bullying cases involving students with neurodiverse conditions or disabilities.

Minister Chan emphasised the importance of sensitivity in these situations.

He noted that there is no one-size-fits-all method for addressing bullying involving students with special needs.

NCMP Hazel Poa questions accuracy of Minister Chan’s Claim on Steady School Bullying Trends

Hazel Poa, Non-Constituency MP from the Progress Singapore Party, noted that while the minister mentioned that the trend of bullying over the past five years has remained steady, she challenged the sufficiency of this timeframe, arguing that social behavior trends may take longer to assess.

She further queried if the minister could provide figures over a longer time frame like for example 20 years?

She also inquired whether there had been any studies exploring the reasons behind bullying behavior among children and young people, aimed at identifying potential preemptive measures to address such behavior.

In response, Minister Chan acknowledged that he did not have data spanning the last 20 years.

“The only thing that we have changed in the classification is that previously we did not account for instances that happen outside school, but more recently we have also put that into our data. That’s about the only change that we have done recently,”Minister Chan told Ms Poa.

WP MP Jamus Lim raises concerns over parental involvement in bullying cases

WP MP Associate Professor Jamus Lim then expressed concern over the limited or absent involvement of parents, particularly highlighting feedback from parents in Sengkang who felt that their outreach to school authorities, such as the discipline master, resulted in inadequate actions due to insufficient family involvement from the perpetrator’s side.

In response, Minister Chan emphasised that the MOE does indeed involve the parents of perpetrators as part of the rehabilitation process.

He clarified that the rehabilitation cannot occur independently of parental involvement, as parents play a crucial role in the partnership needed to raise children effectively.

Minister Chan noted that, unlike jurisdictions that impose fines or punitive measures on parents, the MOE’s approach is more collaborative.

He encouraged parents of perpetrators to engage more actively, and he invited Lim to inform them of any specific cases where parental involvement was lacking, promising to follow up on such concerns.

He also addressed the issue of expectations and pointed out that in difficult cases, some parents may take matters into their own hands, which he described as unhelpful.

He stressed that this type of behaviour serves as negative role modeling for children and is contrary to the guidance the MOE aims to provide.

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Economy

MTI: Singapore’s economy grows by 4.1% in Q3 2024

Singapore’s economy picked up pace in Q3 2024, growing by 4.1% year-on-year, according to advance estimates from the Ministry of Trade and Industry issued on 14 October. On a quarter-on-quarter basis, the economy expanded by 2.1%, surpassing the 0.4% growth in Q2. The recovery was attributed to the manufacturing sector, which registered a 7.5% growth in Q3 after previous contractions.

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SINGAPORE: Singapore’s economy gained momentum in the third quarter of 2024, growing by 4.1 % year-on-year, according to advance estimates from the Ministry of Trade and Industry (MTI) released on 14 October.

This represents a significant increase from the 2.9 % growth recorded in the second quarter.

In Q2 2024, the economy expanded by 2.9% year-on-year, slightly lower than the 3.0% growth seen in Q1.

Separately, Singapore’s central bank The Monetary Authority of Singapore (MAS) announced on the same day that  it will maintain its current monetary policy settings, as inflation shows signs of easing and economic growth continues to strengthen.

The recovery was attributed to the manufacturing sector, which expanded by 7.5 per cent in Q3, a notable rebound following contractions in the previous two quarters.

Other sectors, such as construction and finance, also saw positive contributions to the economy.

On a quarter-on-quarter seasonally adjusted basis, the economy grew by 2.1 per cent, up from 0.4 per cent in Q2 2024.

Advance gross domestic product (GDP) estimates are based on data from the first two months of the quarter, serving as an early indication of Singapore’s economic performance.

These estimates may be revised as more comprehensive data becomes available later in the year.

In August, Singapore had adjusted its GDP growth forecast for 2024 to a range of 2 per cent to 3 per cent, following stronger-than-expected economic performance in the first half of the year.

Previously, the MTI had projected GDP growth between 1 per cent and 3 per cent.

Manufacturing drives recovery

The manufacturing sector led Singapore’s recovery in Q3, growing by 7.5 per cent year-on-year.

This marked a turnaround from the 1.1 per cent contraction in Q2 and the 1.5 per cent decline in Q1. MTI reported that growth was broad-based across all manufacturing clusters except for the biomedical manufacturing cluster.

On a quarter-on-quarter basis, manufacturing grew by 9.9 per cent, a sharp improvement from the 1.2 per cent contraction in Q2. The continued expansion in manufacturing is expected to remain a key driver for overall economic growth.

The construction sector grew by 3.1 per cent in Q3 2024, although this was slower than the 4.8 per cent growth recorded in Q2. This sector’s growth was mainly attributed to an increase in public sector construction output.

On a quarter-on-quarter basis, however, construction growth was flat, moderating from the 3.4 per cent expansion seen in the previous quarter.

Mixed performance in other sectors

The group of sectors comprising wholesale and retail trade, transportation, and storage collectively grew by 3.5 per cent in Q3, slightly lower than the 3.9 per cent expansion in Q2.

Growth within this group was mainly supported by the transportation and storage sectors, with water and air transport performing particularly well.

Wholesale trade also expanded, led by the machinery, equipment, and supplies segment. However, the retail trade sector continued to face challenges, contributing to a more subdued performance.

Meanwhile, the group of sectors including information and communications, finance and insurance, and professional services posted a 4.3 per cent year-on-year growth in Q3, down from 5.3 per cent in Q2.

In the information and communications sector, IT and information services led growth, while the professional services sector benefited from an expansion in activities related to head offices and business representative offices.

The finance and insurance sector saw broad-based growth, particularly in banking and financial services.

On a quarter-on-quarter seasonally adjusted basis, these sectors grew by 1.6 per cent, an improvement over the 1.2 per cent growth in Q2.

Accommodation and food services show steady growth

Sectors related to accommodation, food services, real estate, and administrative support services grew by 1 per cent year-on-year in Q3, maintaining the same pace as the previous quarter.

MTI attributed growth within this group to the accommodation sector, which benefitted from a recovery in international visitor arrivals.

On a quarter-on-quarter basis, these sectors collectively expanded by 0.8 per cent, reversing the 1.3 per cent contraction seen in Q2.

The preliminary GDP estimates for Q3 2024, which will include further details on inflation, employment, and productivity, will be released as part of the Economic Survey of Singapore next month.

The broader economic outlook for Singapore in 2024 remains positive, with growth being driven by key sectors like manufacturing and finance.

However, challenges persist in areas such as retail trade, which may face headwinds in the coming months.

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